Bill 60, ‘An Act to Amend the Petroleum Products and Carbon Tax Act’ was passed on Wednesday in the Legislative Assembly to align the NWT’s carbon tax system with the federal government’s national standards.
The amended Petroleum Products and Carbon Tax Act revises the NWT carbon tax schedule to align with the new federal rates starting on April 1, 2023.
“A made-in-the-NWT solution for carbon pricing, with balanced approaches to unique Northern concerns, is the best way to meet our carbon pricing commitments while minimizing the impact on the cost of living and doing business in the Northwest Territories.” Minister of Finance Caroline Wawzonek said in a release.
On August 5, 2021, Environment and Climate Change Canada (ECCC) announced the carbon price will increase annually by $15/tonne of CO2 equivalent emissions, starting at $65 a tonne and rising to $170 a tonne by 2030.
To mitigate the effects on the cost of living as a result of increased rates the GNWT plans to offer support including replacing the current Cost of Living Offset with a regional plan to support residents living in different regions.
Under the new system, residents living in high-cost of living areas will receive higher payments.